Contract for Paphos – Polis road construction terminated due to contractor’s demands

The Ministry of Transport of Cyprus announced the termination of the contract for the design and construction of the Paphos – Polis Chrysochous road. According to the ministry, the decision was made after the contractor refused to continue the works, making a number of “unfounded and excessive” demands.

The contractor, who signed the contract in 2021, requested compensation of €36 million and a 59-month extension of the construction period, while the total project cost was about €73 million. According to the ministry’s statement, these demands were reviewed by the central committee on contracts and claims, which found them legally unjustified.

The ministry noted that the state had used all legal means to resolve the situation before deciding on termination. Officials emphasized that no payments or approvals will be granted to contractors without proper grounds.

In the near future, the ministry intends to launch a new tender to resume the project under more transparent and sustainable conditions. For local residents, this means a possible delay in the implementation of the long-awaited infrastructure project, which was expected to improve transport connections between the island’s northwest and Paphos.

According to government statements, the priority will be to ensure reliability and public benefit in the implementation of such projects.